It’s been a banner year for IPOs. In the past few years, we saw several high-profile debuts, including Airbnb, DoorDash, and Snowflake. And the trend looks set to continue in 2022, with more anticipated names expected to go public.
Investing in IPOs can be a fantastic way to make money in the stock market. But what about 2022? What can we expect from the IPO market in the coming year? Here are some of the most anticipated IPOs that might take place in the coming year.
Airtable
Airtable is a technology firm that is valued at potentially $11 billion US. They offer cloud-based collaborative software with features of a database.
Airtable’s clientele of over 300,000 companies includes several Fortune 500 enterprises, such as Netflix and Shopify. There have been strong speculation that Airtable will go public this year, as its company valuation has doubled in the past year (2021).
Reddit is a trendy social media platform where users can share images and ideas. It is akin to an online forum. It’s been around for over 15 years, since 2005, and it has been consistently popular in the past decade.
Reddit is now estimated to be worth over $15 billion US, and it looks like it could be gearing up for an IPO in 2022. The company has filed a preliminary IPO registration with the SEC and has hired Morgan Stanley and Goldman Sachs to guide them through the offering process.
Discord
Discord was founded in 2015 and it is a digital platform which allows instant communication using Voice Messaging, Private Messaging, and Video Calls. Discord servers are channels where people communicate and game, and it is supported by many operating systems, such as iOS and Windows, and is also compatible with Android, Xbox, and Playstation.
Discord is valued at $15 billion US, and its latest funding in September 2021 raised $500 million for the company, which doubled its valuation in one year. Although the company has not filed IPO registration statements, it has been expected to go public mid-2022.
Instacart
Instacart offers grocery retail and delivery services to customers in the United States and Canada. It has a mobile app where customers can find items and place their orders, and their products come from over 700 retailers.
During the pandemic, Instacart rose to the occasion and added 200 new retailers on its app while increasing its level of convenience for customers. As the world learns to live with the virus, the company is still very popular and has seen significant year-on-year revenue growth. It is widely speculated to go public in 2022.
Stripe
Valued at $95 billion US, Stripe is one of the most talked-about upcoming IPOs in 2022. The Irish-American company provides SaaS payment solutions for eCommerce websites and mobile apps. Its founders are billionaire entrepreneur brothers Patrick and John Collison.
Stripe is continually making strides, and in recent years, have expanded their partnerships to include payments with Apple and Shopify. It had a $7.5 billion US revenue in 2020 and has expanded to operate in 50 countries. The company is projected to go public in mid-2022.
Three reasons why you should think about investing in IPOs in 2022
Investing in IPOs can be an excellent way to make money in the stock market. But it’s not without its risks. Here are three reasons why you should think about investing in IPOs in 2022:
The economy is improving
After a rough 2020, the economy rebounded semi-well in 2021 and is expected to keep growing into 2022, providing companies opportunities to go public and raise capital to expand their businesses. And as the economy grows, so do stock prices.
Interest rates are low
Lowinterest rates make it cheaper for companies to borrow money and finance their operations, leading to more companies going public as they look to take advantage of low borrowing costs.
The stock market is at an all-time high
Fortunately, the stock market has recovered from its Covid-19 lows and is now high, and this could make IPOs more attractive to companies, as they can cash in on the high valuations.
Finally
These are just a few trading tips and the most expected IPO in 2022. With so many big names expected to go public, it’s shaping into an exciting year for investors.